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Federal student loan defaults have hit an astounding $121 billion, with about 40 percent of all borrowers not currently making any payments, according to a government report.
"This is a slow-moving disaster," Jason Delisle, director of the Federal Education Budget Project at New America, told the
Detroit Free Press. "Why no hearings on Capitol Hill? Why isn't the administration talking about it more?"
The U.S. Department of Education highlighted the report in a self-congratulatory news release about an increase in the number of students who are enrolling in income-based repayment programs. In December 2015, there were 4.6 million borrowers using income-based repayment plans, which represents a 48 percent increase from the year prior, and a 140 percent increase from two years ago, according to the news site.
"Today's analysis suggests that the administration's efforts to help struggling borrowers are having a positive impact," U.S. Education Secretary John King Jr. said. "While we see promising signs of progress, we know we have to work to do to ensure that every borrower in distress has a clear path to avoid default. And I will continue to fight to ensure that students have access to an affordable education that helps them get ahead, rather than drowning in debt."
Many folks, however, simply don't have the money to make their payments, the
Free Press reports.
Detroit 26-year-old Gail Menesko told the news site a divorce forced her to quit cosmetology school to care for her two children, and it's been nearly a year since she made a payment on her student loans. "I want to pay, but other things are a priority now," she said. Menesko is now in default, a category reserved for borrowers who don't make a payment in more than 270 days.
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